At its March 2026 meeting, the Central Bank of Armenia left its benchmark interest rate unchanged at 6.5%, while keeping the deposit and lending rates steady at 5% and 8%, respectively. The move reflects a cautious monetary policy stance in the face of mounting inflationary pressures and robust economic growth.
Annual inflation rose to a nine-month high of 4.3% in February, up from 3.8% in January, and core inflation increased to 4.7% from 4.5%. Both readings exceeded the central bank’s 4% target. At the same time, economic activity remained strong, with GDP growth surging to 9.8% in the fourth quarter of 2025, compared with 6.2% in the previous quarter.
